STAND. COM. REP. NO. 3279

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2797
                                        H.D. 1
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred H.B. No. 2797, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO INSURANCE CODE,"

begs leave to report as follows:

     The purpose of this measure is to clarify the State's
enforcement jurisdiction in certain health-related matters.

     The Insurance Commissioner submitted testimony on the
measure.
     
     The State has been advised by the Health Care Financing
Administration that in order to retain its enforcement
jurisdiction over matters related to the Newborns' and Mothers'
Health Protection Act of 1996 (NMHPA) and the Women's Health and
Cancer Rights Act of 1998 (WHCRA), federal statutory references
in the insurance code require amendment to be more inclusive.
Therefore, this measure replaces certain references to the Health
Insurance Portability and Accountability Act of 1996 (HIPAA) in
the insurance code provision relating to conformity to federal
law with a reference to title 42 United States Code section
300(gg), et seq., which includes the provisions of the NMHPA and
the WHHCRA, in addition to those of HIPAA.

     Additionally, this measure conforms State law to federal law
by requiring that group health issuers offering health insurance
coverage offer all group plans to small employer groups, and

 
a                                                     HB2797 SD1
                                   STAND. COM. REP. NO. 3279
                                   Page 2


clarifies that all group health issuers are prohibited from
imposing any preexisting condition exclusion.

     Your Committee has amended this measure by replacing its
contents with the contents of S.B. No. 2292, S.D. 1, a
substantially similar measure passed earlier by the Senate, and
by making additional revisions thereto.  As amended, this
measure:

     (1)  Deletes the reference to long-term care insurance with
          respect to federal preemption;

     (2)  In the definition of "group health issuer", corrects
          the statutory reference to reflect the applicable
          provisions of the Employment Retirement Income Security
          Act; 

     (3)  Replaces the July 1, 2000, effective date with language
          that makes the measure effective upon approval; and

     (4)  Makes technical, nonsubtantive amendments for the
          purposes of clarification and style.

     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 2797, H.D. 1, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 2797, H.D. 1, S.D. 1, and be placed on the
calendar for Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Commerce and
                                   Consumer Protection,



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
a                                                     HB2797 SD1